Agribusiness firm Calata Corp. says it expects to sign a MOU and lease deals with its international partners at some point this month for its P65-billion Mactan Leisure City development, local media reports.
In a reply to a query from the Philippine Stock Exchange (PSE) on Monday, Calata said its partners Sino-America Gaming Investment Group LLC and Macau Resources Group Ltd. (MRG) target to sign an MOU in “early September 2016” which would create their Philippine unit Macau Leisure City Management Corp. (MLCMC).
As well as MLCMC, Calata also confirmed a real estate investment trust (REIT) “shall be established in September” called Calata Land Inc. The REIT will be 51 percent owned by Calata, 35 percent owned by the Sino Group, and 14 percent owned by Calata president Joseph Calata.
Calata Corp. first announced it had begun discussions with a US-based investment group and Macau-based gaming operator in August to create a real estate and investment trust (REIT) for a proposed P65-billion integrated resort in Mactan, Cebu.
Expected to open in 2020, the 14 hectare development will include three luxury hotels and an entertainment complex featuring a full-scale casino and shopping facilities.
While Calata is only involved in the land interests for which the casino would be built on, the casino is envision to be a “world class development” with an aspiration to be a host to Southeast Asia’s first seven-star hotel.
Calata in its filing said the Mactan Leisure City would “become a game-changer in the region’s family leisure tourism and gaming offering where tourists from all parts of the world will converge to experience luxurious resort life in a tropical paradise while enjoying a variety of family entertainment experiences.” It is expected to “generate tens of thousands of employment opportunities” with gross revenue of about P55.7 billion yearly, said the company.
The US and Macau group is expected to initially contribute around P836.1 million into the project, of which P234 million will go to Calata, which in turn will be invested in its majority-owned corporate vehicle. The remaining P602.1 million will be directly invested in Calata’s majority-owned corporate vehicle.